Starbucks price target lowered to $120 from $125 at BMO Capital

BMO Capital lowered the firm’s price target on Starbucks to $120 from $125 but keeps an Outperform rating on the shares. The company’s softer comps more than offset stronger North America margins, while the management lowered FY24 comp/revenue guidance reflecting near-term sales pressure, the analyst tells investors in a research note. BMO adds however that the risk/reward on the stock skews “solidly to upside”, with tempered expectations already reflected in the stock price and the company’s multi-year earnings growth opportunity remaining “compelling”.